May 30, 2026
While we adhere to strict editorial guidelines, partners on this page may provide us earnings.
Having millions in retirement savings is a common dream. And according to Northwestern Mutual, the average American believes they need at least $1.46 million to retire comfortably in 2026.
So if you have $2 to $5 million in the bank, you’re well above target. But this level of wealth comes with its own unique challenges. Here are the three reasons why being a modest millionaire is difficult to handle.
Advertisement
Uncomfortable tax bracket
Someone with $30 million probably has access to an army of tax lawyers and investment advisors to handle all their complex tax issues. Someone with just $300,000 probably doesn’t have many tax complications to worry about.
But with that $2 to $5 million range, you’re in a difficult zone. This level of wealth is high enough to cause tax complications when taking withdrawals or moving money around. But it’s not high enough to justify a full team of tax professionals.
Still, you should have at least one highly-experienced and knowledgeable financial advisor to help you navigate everything from IRMAA surcharges to Roth conversions. That’s where platforms like WiserAdvisor come in.
If you have a portfolio of $250,000 or more, WiserAdvisor can connect you with vetted professionals who specialize in exactly this kind of planning. Simply answer a few questions about your savings, retirement timeline and overall investment portfolio.
From there, WiserAdvisor reviews its network to match you — for free — with up to three vetted, reputable advisors aligned with your specific needs.
You can then schedule no-obligation consultations with your matches to determine who is the best fit for your long-term goals.
Advertisement
WiserAdvisor is a matching service and does not provide financial advice directly. All matched advisors are third parties, and specific financial results are not guaranteed.
Must Read
- You can now build wealth like a landlord for as little as $100 — and no, you don't have to chase down rent or take 3 A.M tenant calls
- Goldman Sachs used to hoard prime real estate deals for the ultrarich. Two ex-analysts just opened the door for $250
- Robert Kiyosaki begs investors not to miss this ‘explosion’ — says this 1 asset will surge 400% in a year
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
Too exposed to the market
A billionaire probably doesn’t worry about market corrections and a middle-class retiree is likely to be more dependent on Social Security.
But for someone with a $5 million portfolio, you have more to lose. Interest, dividends and withdrawals are probably the bulk of your annual budget. Fluctuations in the stock and bond market have a noticeable impact on your consumption and spending.
One way to mitigate this anxiety is to diversify into safe haven hard assets like gold. Platforms like Priority Gold can help you gain exposure to the yellow metal with added tax advantages through a so-called Gold IRA.
Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainty.
Advertisement
To learn more, you can get a free information guide that includes details on how to get up to $10,000 in free silver on qualifying purchases.
Lifestyle inflation can quickly spiral
If you’re a multimillionaire, you’re probably tempted to live like one. And this temptation could be the biggest financial risk you face.
Moving up to a bigger house, with a fatter mortgage and scheduling multiple vacations every year to live the good life can quickly erode financial security. This could be one of the many reasons why only 36% of American millionaires said they would consider themselves “wealthy,” according to the Northwestern Mutual 2025 Planning & Progress Study.
This lifestyle inflation temptation is difficult to manage, but with the right plan and financial guardrails you can mitigate the issue and protect yourself.
Read More: Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
The instant tip: Build a sleep-at-night cash bucket
An emergency savings fund probably seems redundant at this level of wealth. But the peace of mind that comes from locking away one or two years of living expenses in a safe haven like treasuries or certificates for deposit could be invaluable.
A five-year US government treasury bond offers a 4.27% yield, which isn’t impressive but it is relatively safer than most other alternatives. Parking $150,000 to $250,000 in this shelter can help you absorb any financial shocks.
This money can help you cover costs and avoid withdrawals when the market takes a downturn. It could also help you sleep better at night — and that alone is priceless.
You May Also Like
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and the simple steps to fix it ASAP
- Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how
- Millionaires under 43 are reshaping investing — just 25% of their portfolios are in stocks. Here’s where their money is going
- Robert Kiyosaki issues grim warning for baby boomers. Many could be ‘wiped out’ and homeless ‘all over’ the country. How to protect yourself now
Vishesh Raisinghani is a financial journalist covering personal finance, investing and the global economy. He's also the founder of Sharpe Ascension Inc., a content marketing agency focused on investment firms. His work has appeared in Moneywise, Yahoo Finance!, Motley Fool, Seeking Alpha, Mergers & Acquisitions Magazine and Piggybank.
